Stop Loss - Management of a Technical Trade
Technical Analysis of Stock Prices
Authors
No technical analysis procedure or technique or method is infallible. The analysis gives an entry signal. A technical trader enters into the trade. But if the prices go in the opposite direction to the trend indicated by the technical analysis, the theory of technical trading tells you to close the trade.
Stop losses have to be determined before you enter into a trade. The moment adverse price moment touches your stop loss level, you have to close the trade. Every technical trader must first train himself to accept losses as and when they occur in trading. Losses are an integral part of technical trading. You gain on somedays you lose on some days. But your technique and your trade management process should earn you a good return on the long run. The maxim of trading is to cut your losses and allow your profits to run.
Stop Loss
The stock broker says, what is your stop loss?
The customer says, why should I stop my loss?
I am in it for profit
Why should I drop it?
You know less
But want to make more
Your chart might have said buy
You may be a right guy
But the operator may sell
and your trade may go to hell
Don't use your yell
It is better to sell
Don't allow your trade to stay
Save the capital for another day.
For more poems on stock market
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